Under the proposal, the Clean H2 Infra Fund will become a lead equity investor in relation to the company’s flagship 260 000 tpy green fertilizer project. This agreement marks a significant milestone towards final investment decision (FID).

Oliver Mussat, CEO of ATOME, commented: “We are excited to bring the project to full financial close in the 1H25. Hy24 has demonstrated industry expertise that will accelerate our project development.”

Pierre-Etienne Franc, CEO and Co-Founder of Hy24, added: “This marks Hy24’s first step toward a potential direct investment in the region through our Clean H2 Infra Fund. We are committed to supporting project developers who contribute to providing cleaner alternatives. ATOME’s Villeta project is one of these projects as it is driven by Paraguay’s renewable resources and strong offtake potential within the Mercosur region. Villeta has the capacity to significantly enhance the region’s food sovereignty.”

Head of terms:

ATOME has announced that, following a series of detailed and competitive equity finance discussions with international financing institutions, it has entered into the following terms with the Clean H2 Infra Funding in relation to the 145 MW green fertilizer project in Villeta, Paraguay.

Under the terms, Hy24’s Clean H2 Infra Fund would:

• Become the anchor and lead equity investor in the project and commit to a minimum of US$100 million and up to US$115 million.
• Advance a total of up to US$5 million to ATOME up to FID from its proposed equity participation, with the first installment of US$1 million paid on signing of the terms.

ATOME will maintain daily management and operational responsibility of the project subject to normal governance protections in favour of the incoming equity investors.

The terms attribute to ATOME a value of US$60 million for the Villeta Project. This value is expected to grow as the project comes to fruition and further benefits from ATOME’s ability to co-invest pari passu in Villeta with Hy24 and the other equity club investors.

The full terms envisage a total funding for the project of approximately US$625 million which includes not only the cost of construction but also financing, interest, transaction, and supervision costs during the build period, with at least 60% coming from debt finance with the balance represented by project equity.

The agreed working timetable estimates that the parties progress towards the signing of full definitive agreements with all the equity providers in 2Q25, with FID and full financial closing anticipated with the debt providers by end 1H25. The equity club of investors, incorporating Hy24’s Clean H2 Infra Fund and ATOME, will be constituted within that time frame. As previously stated, the debt financing element of the project finance is substantially oversubscribed on the basis of the non-binding offers received and has progressed materially with global financial institutions on better than expected terms. Specific details of the make-up of the debt participants are expected to be announced by the end of April 2025.

Final discussions on the definitive engineering, procurement, and construction agreement with the company’s chosen contractor Casale S.A. are progressing rapidly with agreement signing anticipated in 1Q25. Negotiations on the definitive full offtake agreement with Yara International are proceeding well with senior Yara representatives, following a visit to Paraguay at the end of January 2025. It is anticipated that the definitive agreement will be signed by early 2Q25, subject to necessary approvals.

The terms are non-binding other than in respect of the exclusivity period and the advance by Hy24’s Clean H2 Infra Fund of up to US$5 million of its proposed equity participation (repayable if full definitive binding agreements are not entered into). ATOME has also agreed to a binding breakup fee of up to US$1 million in the event that the company breaks the exclusivity arrangements.